The FSCA this week announced it has fined KEB Prosperity (Pty) Ltd R50 000 for contravening the FAIS Act for three months of last year.
In a statement, the Authority said an investigation found that, from 1 September and 1 November 2021, KEB falsely or incorrectly advertised on its website that it was an FSP regulated and authorised by the FSCA as an “investment firm” offering investments and trading in derivatives and contracts for difference.
In doing so, it contravened sub-paragraphs 8(9)(c)(i) and (ii) of the FAIS Act. In terms of these sub-paragraphs, no person may perform any act, make or publish any statement, advertisement, brochure or similar communication that:
- relates to the rendering of a financial service, the business of a provider or a financial product; and
- the person knows, or ought reasonably to know, is misleading, false, deceptive, contrary to the public interest or contains an incorrect statement of fact.
The FSCA said KEB gave the Authority its full co-operation in the matter.
